No Monetary Board approval for EPF investments in SriLankan Airlines

ECONOMYNEXT- Sri Lanka’s largest retirement fund which is under the custodianship of the Central Bank had not obtained approval from the Monetary Board to invest in the loss-making state-run national carrier in 2010, an official said at a commission of inquiry.

Company Secretary Dalrene Thirukumar, who had jointed SriLankan Airlines in 2013, presented documents filed by her predecessor.

The Presidential Commission is inquiring into irregularities at the airline from 2006 to 2018.

Thirukumar said that she could not find any evidence of the Monetary Board giving the Employees’ Provident Fund (EPF) approval to invest in SriLankan.

When asked, she said that she would check existing records to see upon whose authorization the trade was done.

She also said she would check whether SriLankan had submitted an investment proposal to the EPF.

The commission is examining a set of share trades done in June 2010, when 43.63 percent of SriLankan shares held by its former management partner Emirates were transferred to three state banks and the EPF.

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The trades had been done without cabinet approval for two of the banks and the EPF, Thirukumar said based on available documents.

The retirement fund had purchased 1.8 million SriLankan shares for 4.3 million US dollars, she said. (COLOMBO, 6 August, 2018)
 

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